How To Support Black Businesses With Strategies, Funding, Grants
Supporting Black businesses and Black entrepreneurs matters.
In academics, economics, business, finance, law, and practically all other spheres, Black people are under-represented. It has started a revolution of sorts as protests take place across the U.S. for equality.
“In academics, economics, business, finance, law, and practically all other spheres, Black people are under-represented. It has started a #revolution of sorts as protests take place across the U.S. for #equality. #BLM”
The Black Lives Matter movement is affecting the world in a profound way, bringing the plight of African Americans into the limelight. Its effects are far-reaching, and it is occurring in tandem with the COVID-19 pandemic to make it even more difficult to run a successful business, but there are strategies to fill these gaps.
The average total net worth of a white family was 10 times that of a Black family in 2016. The main reason for this, however, is heralded as being a lack of inherited generational wealth as opposed to systemic racism. Almost 20% of Black families have debt that exceeds their assets, due to a combination of a lack of financial education and a lack of generational wealth.
The National Association for the Advancement of Colored People is the most prominent organization in terms of education, financial empowerment, and social equality for Black citizens. Their 2016 Black Lives Matter pamphlet included 11 tips to help Black children become more financially aware, how to increase Black ownership of franchises, and how to promote entrepreneurial leadership within Black communities.
The Black Lives Matter movement was founded in July 2013 to protest police brutality against African Americans. It has now reached a global level with the recently recorded death of George Floyd in Minnesota at the hands of a white police officer. This most recent event has led to mass protests across the world.
Fortunately, there are many ways to demonstrate support and build a better nation with small but impactful actions. A primary way to help is to divert your spending towards Black-owned businesses. But this is by no means the only way to ensure social solidarity, and there are many paths forward. Some of these are outlined below.
“There are many ways to demonstrate support and build a better nation with small but impactful actions. A primary way to help is to divert your spending towards Black-owned businesses. #SupportBlackBusiness”
Use Social Media. Social media remains one of the best ways to make a positive impact on Black business owners. After all, it’s free. Make your voice heard, follow leaders whom you trust, and follow Black-owned businesses on Twitter and Facebook. Get your friends involved and cite studies and statistics on the subject matter to generate awareness. Social media is probably one of the most powerful tools at your disposal..
“Social media remains one of the best ways to make a positive impact on #Blackbusiness owners. After all, it’s free. #BuyBlackOwned”
This is not merely a fad. Black-owned businesses have received an upsurge in sales amid the protests, and this has largely been attributed to social media awareness generation campaigns. This is in spite of the fact that Black-owned businesses have been the hardest hit as a result of the COVID downturn.
Get Informed. By simply understanding the obstacles that Black business owners face and the history of Black people in America, you will be doing a lot to assist. It will help you to explain it to others and to see why this group needs support and attention at the current time. It always helps to stay informed and to know the figures.
“#GetInformed. By simply understanding the obstacles that #Blackbusiness owners face and the history of Black people in America, you will be doing a lot to assist. ”
For example, while many corporations are saying they are going to address concerns, they tend to have a poor track record. And in a survey of Black economists carried out by the American Economic Association, only 14% agreed with the statement that “people of my race/ethnicity are respected within the field.”
The more you know about any particular issue, the better you can respond to it and ultimately resolve it. Without being aware of such issues, the problems will not be addressed. As a consumer and a citizen, you have the financial and social power to help.
Make Black Purchases. Try to shop with Black-owned businesses in your local area to give them some financial support.. There is a 30-day ‘Buy Black Challenge’ campaign that is getting started. This started on June 19th and will help you find Black stores and make a positive impact by highlighting the benefits of these stores and making a financial contribution. Each day, businesses in different industries are highlighted. The idea is to start a trend so that more and more people will buy Black, year-round.
“Make Black Purchases. Try to shop with Black-owned businesses in your local area to give them some financial support amidst the disaster. #BlackOwned ”
Be Actively Involved. With the Black Lives Matter Movement sweeping the world, there are petitions, movements, and organizations that you can join to better the lives of Black people in the U.S. You might even consider being a group leader, attending a peaceful protest/event, or setting up your own petition.
“Be Actively Involved. With the #BLM Movement sweeping the world, there are petitions, movements, and organizations that you can join to better the lives of Black people in the U.S. #TakeAction”
Donate Directly to Black Businesses. Many Black-owned businesses have been hit very hard with the recent COVID crisis and have also seen shutdowns and damage to their businesses during and after some protests. You can make a direct financial contribution to help out. The alternative is to make purchases at Black-owned stores. Many initiatives are in place for you to find and fund local and national Black-owned businesses.
“#Donate Directly to #BlackBusinesses. Many Black-owned businesses have been hit very hard with the recent COVID crisis.”
Premiere Resources For Black Businesses. There are multiple programs that have been specifically designed to help Black business owners given the unequal challenges that they face. Using these resources can help to level the playing field. This is not an exhaustive list but contains the more prominent resources for Black-owned businesses.
“Programs led by organizations like @NASEtweets, @Blackenterprise, @Blackfounders and more have been specifically designed to help #Blackbusiness owners, given the unequal challenges that they tend to face. ”
National Association for the Self-Employed. This allows grants up to $4,000 for Black business owners. It is one of the foremost resources, providing training, networking, events, seminars, education, grants, and many other facilities. It can really help business owners to get started and also provides consultancy, life insurance, and medical emergency assistance. It is not only for Black business owners but for many other eligible groups.
Black Women Enterprises. Black Women Enterprises has its headquarters in New York City and offers numerous services to Black women in business. Its core mission mandate is to remove the barriers against economic success for Black women. They also say that they are open to all women, as they do not discriminate, though their primary focus is on Black female entrepreneurs. Membership is free.
Millennial Entrepreneurs Redefined. This is available for minority persons between 18 - 35. Live workshops are operational in seven cities: Atlanta, Detroit, Washington D.C, Dallas, New Orleans, St. Louis, and Oakland. The aim is to assist minority millennial entrepreneurs to get up and running with coaching and training. The initiative is powered by the US Black Chambers Inc Community Development Corporation. It is partnered with the Black Business Empowerment program.
DreamSpring. Not directly aimed at Black business owners, however, it does empower minority groups. It is available to all types of business owners in Arizona, Colorado, Nevada, New Mexico, and Texas. This non-profit has been in operation for over 26 years and provides loans up to $2 Million.
Black Enterprise. This is not a funding or training organization, but an online publication that serves the Black community by highlighting key trends in the industry and motivates Black entrepreneurs. Another popular online journal is the Minority Business Entrepreneur.
Black Founders. Black Founders is aimed at the empowerment of Black people in the technology sector. They have created a global network that allows Black people to share resources and connect. This is a very popular resource for Black entrepreneurs in the technology niche and has been featured in the Huffington Post, Black Enterprise, and MSNBC. They provide conferences, connections to funding, hackathons, and educational resources.
Black Business Association. This is only available to Black business owners in California. It is the oldest minority orientated organization in the state. Its aim is to provide funding resources to this demographic as well as providing more opportunities on a social, political, and economic level. Founded in 1970, it is now over 50 years old, with its headquarters in Los Angeles. The Black Business Association is a non-profit organization.
Disadvantaged Business Enterprise Program. This program has been designed to protect minority business owners against discrimination when procuring Federal transportation contracts. All business owners who are at a social disadvantage can gain assistance if they are involved in this industry (primarily transportation and construction).
CATAPULT. This is a joint effort from Capital One and the National Minority Supplier Development Council. It is essentially a seven-month long training program designed to empower and educate minority business owners. But it is orientated towards the resolution of complex problems or getting creative startups up and running. The National Minority Supplier Development Council is an avenue for Black business owners. It runs a non-profit consortium known as the Business Consortium Fund, which offers funding and consulting for minority business owners.
There are a number of grants available to Black business owners. For a more comprehensive list of grant options, check our list of business grants. It’s the most comprehensive and up to date article on active grants available to US business owners.
“There are a number of grants available to #Blackbusinessowners. For a comprehensive list of grant options, check this list of #businessgrants here by @Finimpact: https://www.finimpact.com/small-business-grants/ ”
Billions of dollars worth of grant funding are given out each year. You have to find a balance between the time you spend applying against the probability of success. Some of the most prominent grant resources available to Black entrepreneur include:
Minority Business Development Agency. This is an arm of the U.S. Department of Commerce. It connects minority business owners to funding and training resources. There are many business development centers across the U.S. that supply a large number of grants and funding opportunities.
Black Enterprise Elevator Pitch Competition. The ultimate prize is $10,000 for the winner of this contest. The four semi-finalists will pitch their idea to a panel of judges while the audience watches. The only real requirement is that the contestants are Black and have an equity stake in the business.
Miller Lite Tap the Future® Business Plan Competition. Grants up to $20,000 are available through the Miller Lite Tap the Future® Business Plan Competition. This was previously known as the MillerCoors Urban Entrepreneur Series. On top of the prize money, applicants will have the opportunity to pitch at Shark Tank, in front of well known entrepreneurial ‘sharks.’ It also provides business exposure through the ‘Fan Favorite’ contest.
Aside from these three primary grant programs, there are other places you can visit to apply for grants. Some of these options are outlined below. Remember that grant writing is by no means an easy or straightforward process. It takes time to write a good grant application, and you need to have a system in place.
For some business owners, grant writing is its own department, with a specialist designated to find appropriate grants and write excellent and specific applications on a yearly basis as the grant programs reopen each year. Other places to find grants include: Business USA; Catalog of Federal Commercial Assistance; State Business Incentives Database; Small Business Innovation Research; Small Business Technology Transfer Programs ; Challenge.Gov; Department of Agriculture Grants; National Institute of Standards and Technology Grants; Department of Education Grants and Environmental Protection Agency Grants.
The outlook is not all grim, as sales are increasing and the economy is set to stabilize over the coming weeks and months.
Sarah Davis is a business executive specializing in mergers and acquisitions, corporate finance, and international law. She achieved her MBA from Cornell University after completing a legal undergraduate at University of California-Berkley. Sarah runs her own business consultancy firm in tandem with working alongside the FinImpact team.